KARACHI, April 5 Patoki Sugar Mills, an unlisted company intends to acquire 7.4 million shares, representing 78.8 per cent of the capital of Baba Farid Sugar Mills, a Fecto Group's company listed on the stock exchanges.

In a notice in compliance of substantial acquisition and Takeover Regulations, 2008, Patoki stated that it would make a public announcement of intention in respect of potential acquisition of the majority shares of Baba Farid Sugar Mills.

The total number of issued shares of the target company were stated to be 9.5 million of which 78.82 per cent were to be acquired by Patoki through agreement.

“Public offer shall be made as per requirements of law,” the company said.

Patoki being a private limited company, its accounts are not open to the public view and the shareholders in Baba Farid would have to wait to see if the acquisition turns out to be to their benefit.

Adamjee Insurance

The Adamjee Insurance Company announced on Monday that a shareholders meeting would be held on April 26 to seek approval for investment in associated companies.

The company proposes to invest Rs15.6 million in equity of Nishat Mills by way of subscribing to 0.391 million right shares at Rs40 per share, including premium of Rs30 per share offered by the NML at 45 per cent of the existing shareholding and to dispose of, through any mode at any time, a part or all of the investment and unpaid right entitlement to NML.

Approval would also be sought for investment of Rs4.7 million in equity of D G Khan Cement by way of subscribing 0.235 million shares at Rs20 per share. Shareholders in Adamjee would also be asked to authorise the company to make investment of up to $15 million, in equivalent Pak Rupees by way of purchasing shares of AES Lal Pir (Private) Limited and AES Pak Gen (Private) Limited.

Break-up value of 10-rupee share in NML, based on published financial statements, stood at Rs97.88 on Dec 31, 2009 (reviewed accounts) and that of D G Khan stock at Rs41.52.

Investment in the companies were stated to be long term equity in order to earn dividend income as well as prospective capital gains.

Adamjee would raise funds for purchase of shares from its own sources.

At Dec 31, 2009, the company was stated to carry equity of Rs10 billion on its balance sheet.